Is the Fiduciary Rule Dead? [FTF News]

Originally published in FTF News | By Eugene Grygo | April 12, 2018

Whatever happened to what is known as the “Fiduciary Rule,” propagated by the U.S. Department of Labor? MyVest CEO Anton Honikman sat down with FTF News for a mini-Q&A on its possible future:

Q: How would you describe the status of the fiduciary rule? Is it dead and gone or will it ultimately go into effect?

Honikman: The Fifth Circuit Court of Appeal’s recent decision to vacate the DOL’s fiduciary rule is just the latest in a long line of obstacles in the industry’s inevitable evolution toward truly client-centric wealth management.

So, I don’t think the fiduciary rule is dead. It will live again, but probably in a revised form and from a different regulator.

The DOL’s rule is too narrow (i.e. retirement accounts) so I question whether they’re the right regulator to implement this in the first place.

Q: How should financial services firms proceed given the current situation with the fiduciary rule?

Honikman: Many firms will take a wait-and-see approach given the many scenarios that could play out, especially with specific investment in compliance and reporting systems.

However, many will continue the process ignited by the DOL rule toward aligning their advice, compensation models, and product offerings with the interests of their customers.

So, given all that I have gathered, it’s safe to say that the Saga of the Fiduciary Rule is in a bureaucratic limbo, which means it may be resurrected or could die a quiet death.

Read the full article in FTF News.

2018-08-15T00:19:15+00:00